45 Sec. Read
By Jack Bogle
Warren Buffet highly recommends “The Little Book of Common Sense Investing.”
Buffet has called Jack Bogle a hero to him. He said Bogle has done more for American Investors than anyone he has known.
Jack Bogle was the founder of Vanguard, one of largest investment management companies in the world. He was also the creator of the first S and P 500 Index fund.
Bogle created Vanguard and structured it in a way to be owned by its customers, and not outside shareholders. Since there are no outside investors, Vanguard can keep the fees as low as possible. Bogle could have been a billionaire if he structured Vanguard like other banks, but Bogle was not interested in being a billionaire. Bogle wanted Americans to get their fair share of the market with the lowest fees.
Bogle believes the best way to invest is to buy the S and P 500 Index fund. He believes that the S and P 500 Index fund will do better than any almost any other fund and managers in the long term. He created the first S and P 500 Index Fund in 1976.
“DEEP DOWN, I REMAIN absolutely confident that the vast majority of American families would be well served by owning their equity holdings in a Standard & Poor’s 500 Index fund (or a total stock market index fund) and holding their bonds in a total bond market index fund.” (p. 259)
Warren Buffet said, “Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.” (p. 260)
Paul Samuelson, the Nobel prize winning economist, said he ranked the invention of Bogle’s index fund, up there with the “invention of the wheel, the alphabet, Gutenberg printing, and wine and cheese.”
Bogle’s Advice on how to invest.